An Illinois insurance agent must surrender his license and pay a $100,000 fine for developing, marketing and selling an insurance scheme to a state funeral directors group.

The sanctions against Edward L. Schainker of Springfield, Ill., are the maximum penalty allowed under state law, according to the Illinois Department of Insurance.

He was found to be recommending and selling a program of tax-exempt variable universal life insurance policies to the Illinois Funeral Directors Association as investment vehicles within a trust, according to the insurance department.

The trust, which involved individual funeral directors, was allegedly designed to produce income to IFDA members in connection with the burial expenses of Illinois consumers who purchased pre-need contracts from the association.

According to a Sept. 15 order, signed by Schainker, the program recommended by the former agent consisted of more than 200 variable universal life policies insuring the lives of 120 IFDA members and others.

The agency said Schainker personally derived “substantial income” from the scheme and his business practices did not comply with state law nor did it serve the interests of the funeral directors and their client families.